 Why IT Contractors Should Leave Tax Returns to the Experts
In the world of IT contracting, there’s a common mindset among self-taught programmers and freelancers: “I can figure it out myself.” While this works well for troubleshooting code and debugging software, the same approach often backfires when applied to taxes and company accounts. Too often, IT professionals—usually men, let’s be honest—attempt to handle their own tax returns using information pieced together from the internet. Their goal? Save a bit of money by avoiding professional accountant fees. The problem? This DIY approach frequently results in costly mistakes, wasted time, and increased risk of an HMRC investigation. The Costly Misconception of DIY Tax Filing Many IT contractors assume that because they solve complex technical problems daily, they can easily navigate tax laws. But tax legislation is a different beast—nuanced, constantly evolving, and filled with legal jargon that isn’t always intuitive. A small error or misunderstanding can have major consequences, such as:
Why IT Contractors Need Professional Tax Accountants Just as programming and cybersecurity require expertise, tax planning and financial management do as well. An experienced accountant offers:
Tax Affinity Accountants – Your Trusted Tax Experts At Tax Affinity Accountants, we specialize in helping IT contractors stay compliant, minimize tax liabilities, and focus on their core work without financial distractions. Unlike generic accounting firms, we understand the unique financial challenges faced by IT professionals, freelancers, and contractors. Our tailored services ensure that you maximize deductions, avoid penalties, and stay ahead of tax obligations. Our expert team provides: ✅ Personal Tax Returns & Self-Assessment ✅ Company Accounts & Corporation Tax ✅ VAT Returns & Bookkeeping ✅ IR35 Guidance & Compliance ✅ Business Growth & Financial Planning Why struggle with taxes when we can handle it for you? With our proactive advice, we don’t just file your returns—we actively help you keep more of your hard-earned money. Whether you need assistance with HMRC filings, tax-saving strategies, or business accounting, we’ve got you covered. Stick to What You Do Best Think of it this way: a home mechanic might attempt to fix their own car, but without professional knowledge, they could cause bigger, costlier problems. Similarly, IT contractors who try to manage their own taxes often end up making expensive errors that could have been easily avoided with expert help. At Tax Affinity Accountants, we specialize in helping IT contractors stay compliant, minimize tax liabilities, and focus on their core work without financial distractions. Instead of risking an HMRC investigation or losing money due to tax inefficiencies, let our team handle it for you. Get Expert Help Today If you're an IT contractor still trying to DIY your tax returns, it’s time to rethink that strategy. Save yourself time, money, and stress by partnering with experienced tax professionals who can handle everything for you. 📞 Call Tax Affinity Accountants now 🌐 Visit www.taxaffinity.com to learn more 📍 Book a FREE Consultation Today! Tax Affinity Accountants Expert advice. Proactive solutions. Financial success. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. #TaxAffinity #ITContractors #SelfAssessment #HMRC #TaxReturns #BusinessGrowth #AccountingExperts #FinancialSuccess #TaxSaving #UKBusiness #IR35 #Contractor #IT #DIY
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 Tax Affinity Accountants local branches We have a lot of limited company owners asking about IR35 - the HMRC rule about removing some rights to work as a limited company personal service provider and be counted instead as an employee due to pay tax and ni at the PAYE tax rates.
Obviously many consultants and contractors are worried that they will end up having to pay more tax some at 40% higher rate of income tax rather than the 19% corporation tax previously paid on their limited company. So we have compiled a simple questions & answer to help answer common questions that arise: Q. As a consultant / contractor, can I work inside and outside IR35 on different jobs? A. Yes. It is possible to have one job found outside IR35 and another to be inside IR35. Each job will be assessed on its own merits as per the IR35 status tests. IR35 applies on a case-by-case basis. Q. If I accept an job inside IR35, will I be worse of financially? A. Yes. An inside IR35 job means you have to pay all PAYE/NIC deductions as per a normal employee on all your gross income. This will be made at sourc and have a direct impact on your take-home pay. If you were working through your own Limited company previously. You were paying tax on net income (after expenses). However, there are options such as re-negotiating and increasing your day rate, looking for contracting work that is considered outside IR35. Working for more than one company and making sure your paperwork proves your outside IR35. Contracting through our purpose built umbrella company to help clients. We have many options available. Q. If I disagree with my status given, is there anything I can do to challenge it? A. Yes. When your client has assessed your IR35 status they should provide you with a Statement Determination Statement (SDS) which will detail the reasons for your Outside/Inside IR35 status. Once you have received this, you can dispute the determination. The client has 45 days to respond. If you choose to dispute your IR45 status, we recomend you gather evidence to support the reasons which you believe the decision is wrong. Q. Will HMRC be looking to recover backdated tax for previous jobs it deems to be inside IR35? A. No word yet. When the client decides your inside IR35 after April 6th 2021 it means that they have to make the PAYE & NI deductions after that date. If you were in the engagement prior to 6th April, the responsibility for IR35 remains your own. So, your status before will remain be your responsibility and can hold a retrospective liability risk. HMRC has previously said it will not proceed with targeted campaigns of those who have had a change in status and IR35 was first started in the public worker sector such as NHS and local authority previously and this was not the case then. Having seen many clients go through this a couple of year ago when IR35 was introduced to public sector worker. We managed to successfully guide most of them to a tax efficient solution. So are now very experienced to help the new batch of private sector IR35 workers after 6th April 2021. Get in touch today and we will be happy to help you keep more of your hard earned money. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. |
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